Skip to main content

Considering whether to replace your on-premises software with a cloud solution? A newly released Nucleus Research White Paper provides some insights.

First, “Nucleus found that cloud application projects deliver 2.1 times the ROI of on-premise ones — up 24 percent since 2012.” In addition, that study “found that the average cloud application project delivered 1.7 times more ROI than an on-premises one.”

Because cloud software is becoming increasingly feature-rich they are offering increased ROI. That looks like it will continue for the foreseeable future.

Rebecca Wettemann, an analyst for Nucleus Research wrote: “Companies continue to invest in cloud applications and infrastructure projects because of the lower initial cost and faster time to value. As more and more vendors have invested in moving their solutions to the cloud, the breadth of availability of cloud platforms, applications, and services has grown – as well as the complexity of cloud applications available.”

This means that all of the things that have made cloud software popular, adaptability, integration, customizability, plus relatively low initial start up cost are still true. These are expected to more true in the future.

All the things that made cloud software popular, adaptability, integration, customizability, plus relatively low initial start up cost are still true.

How To Save with Cloud Software

Cloud Delivers 2.1 Times More ROI highlights two primary numbers that should make everyone weighing a switch to cloud pay attention.

1. Consulting and Implementation Support

The cost of implementing cloud applications is 63% lower than on-premises applications. That’s up from 40% in 2012. Wow!

2. Support Staff

The cost for support staff is 55% lower for cloud applications than it is for on-premises applications.

How does cloud software create such amazing savings? Cloud software changes continuously with your business without the burden of installing upgrades that require testing and training. As your business realize the many benefits of cloud software what will you do with the amazingly high ROI? Will you put it back into your business to grow it in more and better ways?

Other Benefits of Cloud Software

Here a few other benefits the Whitepaper discusses. (Read the report for even more ways Cloud is better.)

If you run into a problem with your software, who is better equipped to get it fixed: your internal IT support or the cloud software provider that looks after only that one application?

Nucleus Research found that “When the vendor, not internal IT, is responsible for a successful deployment, the business is much more likely to demand a 100 percent solution instead of just an ‘OK’ one.”

Going Green

“Cloud applications use 91 percent less energy than on-premise ones.” That’s great for the environment and those savings are part of the 2.1 times ROI of a cloud implementation.

With benefits like lower startup costs, flexibility of the software, reduced IT support staff, passing maintenance responsibility to the provider plus the environmental savings, it’s hard to argue against the cloud.

For the details and analysis, read the Whitepaper on how cloud solutions provide a high ROI.

To see how cloud ERP software would work for you, contact us for a free demo.

Leave a Reply